UPS to pay $8.4M to settle claim of overcharging government

WASHINGTON (AP) — The Justice Department says United Parcel Service Inc. must pay $8.4 million to settle allegations that the company was overcharging the federal government for package deliveries.

The settlement was announced Friday.

The Justice Department alleges UPS failed to abide by terms of its contract with the General Services Administration and overcharged the government for services from 2007 until 2014. The government says its contract required UPS to provide the same lower prices offered to other customers.

Assistant Attorney General Jody Hunt said the settlement shows the government "will hold accountable" contractors who try to overcharge the federal government.

The settlement resolves the allegations, but there was no determination of liability.

UPS said the allegations stemmed from "good faith differences regarding contract interpretation" and it was pleased the matter was resolved.